e.l.f. Beauty Inc (ELF) Shares Decline Despite Market Challenges

The stock of e.l.f. Beauty Inc (NYSE: ELF) has decreased by -3.15 when compared to last closing price of 191.97. Despite this, the company has experienced a -7.05% fall in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-03-27 that Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock’s price, do they really matter?

Is It Worth Investing in e.l.f. Beauty Inc (NYSE: ELF) Right Now?

e.l.f. Beauty Inc (NYSE: ELF) has a higher price-to-earnings ratio of 82.42x compared to its average ratio, The 36-month beta value for ELF is at 1.55. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 4 rating it as “overweight,” 5 as “hold,” and 0 as “sell.”

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The public float for ELF is 53.06M, and currently, shorts hold a 5.07% of that float. The average trading volume for ELF on April 03, 2024 was 1.48M shares.

ELF’s Market Performance

ELF’s stock has seen a -7.05% decrease for the week, with a -14.48% drop in the past month and a 28.81% gain in the past quarter. The volatility ratio for the week is 3.86%, and the volatility levels for the past 30 days are at 4.70% for e.l.f. Beauty Inc The simple moving average for the last 20 days is -7.43% for ELF stock, with a simple moving average of 36.45% for the last 200 days.

Analysts’ Opinion of ELF

Many brokerage firms have already submitted their reports for ELF stocks, with Robert W. Baird repeating the rating for ELF by listing it as a “Neutral.” The predicted price for ELF in the upcoming period, according to Robert W. Baird is $185 based on the research report published on January 30, 2024 of the current year 2024.

Morgan Stanley, on the other hand, stated in their research note that they expect to see ELF reach a price target of $168, previously predicting the price at $137. The rating they have provided for ELF stocks is “Equal-Weight” according to the report published on January 22nd, 2024.

Raymond James gave a rating of “Strong Buy” to ELF, setting the target price at $140 in the report published on October 23rd of the previous year.

ELF Trading at 0.84% from the 50-Day Moving Average

After a stumble in the market that brought ELF to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.18% of loss for the given period.

Volatility was left at 4.70%, however, over the last 30 days, the volatility rate increased by 3.86%, as shares sank -11.02% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +17.83% upper at present.

During the last 5 trading sessions, ELF fell by -7.05%, which changed the moving average for the period of 200-days by +82.41% in comparison to the 20-day moving average, which settled at $199.69. In addition, e.l.f. Beauty Inc saw 28.81% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ELF starting from Franks Joshua Allen, who sale 6,540 shares at the price of $206.32 back on Mar 08 ’24. After this action, Franks Joshua Allen now owns 84,463 shares of e.l.f. Beauty Inc, valued at $1,349,327 using the latest closing price.

AMIN TARANG, the Chief Executive Officer of e.l.f. Beauty Inc, sale 23,519 shares at $198.89 during a trade that took place back on Mar 05 ’24, which means that AMIN TARANG is holding 10,889 shares at $4,677,740 based on the most recent closing price.

Stock Fundamentals for ELF

Current profitability levels for the company are sitting at:

  • 0.16 for the present operating margin
  • 0.69 for the gross margin

The net margin for e.l.f. Beauty Inc stands at 0.15. The total capital return value is set at 0.17. Equity return is now at value 25.89, with 15.55 for asset returns.

Based on e.l.f. Beauty Inc (ELF), the company’s capital structure generated 0.31 points at debt to capital in total, while cash flow to debt ratio is standing at 0.25. The debt to equity ratio resting at 0.44. The interest coverage ratio of the stock is 27.83.

Currently, EBITDA for the company is 88.43 million with net debt to EBITDA at 1.27. When we switch over and look at the enterprise to sales, we see a ratio of 11.84. The receivables turnover for the company is 7.35for trailing twelve months and the total asset turnover is 0.8. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.50.

Conclusion

In conclusion, e.l.f. Beauty Inc (ELF) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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